Do Not Be Fooled: Toward a Holistic Comparison of Distributed Ledger Technology Designs

Abstract

Distributed Ledger Technology (DLT) enables a new way of inter-organizational collaboration via a shared and distributed infrastructure. Meanwhile, there is plenty of DLT designs (e.g., Ethereum, IOTA), which differ in their capabilities to meet use case requirements. A structured comparison of DLT designs is required to support the decision for an appropriate DLT design. However, existing criteria and processes are abstract or not suitable for an in-depth comparison of DLT designs. We select and operationalize DLT characteristics relevant for a comprehensive comparison of DLT designs. Furthermore, we propose a comparison process, which enables the structured comparison of a set of DLT designs according to application requirements. The proposed process is validated with a use case analysis of three use cases. We contribute to research and praxis by introducing ways to operationalize DLT characteristics and generate a process to compare different DLT designs accordingly to their suitability in a use case.